ICES Experimental Economics Brown Bag Lecture

Business Drinking: Evidence from A Lab-in-the-Field Experiment

Thursday, March 4, 2021 12:00 PM to 1:00 PM EST
Online Location, Zoom Meeting

The Interdisciplinary Center for Economic Science (ICES) presents an ICES Brown Bag Lecture featuring:

Jianxin Wang

George Mason University

Business Drinking: Evidence from A Lab-in-the-Field Experiment

 

Please contact ICES Office Manager (sbahabib@gmu.edu) for Zoom link.

 

Abstract

Although alcohol consumption is an important component of business negotiations across many cultures, this behavior remains unmodeled. Here, we develop a theory that combines guilt-aversion with a canonical alcohol myopia framework. Our GAAM (guilt aversion and alcohol myopia) model predicts that intoxication increases promise-making, but has no effect on promise-breaking. We test these predictions using a prisoner’s dilemma game with pre-play communication in a lab-in-the-field experiment. Among males, we find behavior consistent with predictions. We do not observe intoxication to impact female promise-making or promise-breaking behaviors, consistent with previous empirical findings that females are relatively insensitive to alcohol-induced myopia.

 

For more information about the Brown Bag Lectures, please visit the Brown Bag Schedule homepage.